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Ksju [112]
3 years ago
7

. Calculating Cost of Preferred Stock: Holdup Bank has an issue of preferred stock with a $3.75 stated dividend that just sold f

or $87 per share. What is the bank’s cost of preferred stock?
Business
1 answer:
gladu [14]3 years ago
7 0

Answer:

4.31%

Explanation:

Calculation for the bank’s cost of preferred stock

Using this formula

Cost of preferred stock=Dividend / Selling price of stock

Let plug in the formula

Cost of preferred stock= $ 3.75 / $ 87

Cost of preferred stock= 4.31%

Therefore the Cost of preferred stock will be 4.31%

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Which one of the following accounts will have a credit balance?
Tems11 [23]

Answer:

Common Stock

Explanation:

We know that

The debit sections track assets, expenses side, and dividend while revenues, stockholder equity, and the liability side are reported in the credit section.

So in the given question, the common stock has credit balance whereas the dividend, supplies, and the salary expense has a debit balance

By proper posting of accounts in the correct columns, the total of debit and credit columns would be matched.

3 0
3 years ago
During the last half of 2008, the Fed seemed to take "baby steps" in reducing the federal-funds rate target, before finally lowe
emmasim [6.3K]

Answer:

Why can't the Fed push the rate any lower than zero?

Real interest rates can be lower than zero, or negative (because inflation rate is higher than interest rate), but nominal interest rates are generally only limited to zero. But during this same time, the European Central Bank actually started paying negative interest rates on money deposits and many European private banks followed. That means that they charged people for having their money on the bank.

Why do you think that the Fed was so seemingly reluctant to push the rate all the way to the floor?

The reason why the Fed was not willing to push the interest rates to zero or even below zero was that by doing so, the US dollar would have depreciated or lost value. In Europe this was done to encourage people to spend their money and not save as much, but in the US that is not really a problem. Generally in the US the problem is that people spend too much and save too little, but on some European countries and Japan, people tend to save too much. For example in Japan the national savings rate fluctuates between 22-40%, while the maximum savings rate in the US has been 10.4% in 1960, it currently is around 7.6%.

4 0
4 years ago
Inadequate disclosure occurs when: a. A company attempts to overstate assets to make their financial position look better. b. Ma
Fudgin [204]

Answer: Option B

         

Explanation: In simple words, inadequate disclosures refers to the situation when a company fails to make accurate or enough discloses in a statement as required by various laws and regulations.

The disclosure can be done through any medium such as media or in the yearly statement but if it does not contain proper information that it will be considered as an offence and suitable actions could be taken.

7 0
3 years ago
Jane Tucker is the ethics officer for a publicly traded company. She is concerned that the company does not have a mechanism for
BabaBlast [244]

Answer: C) Without an anonymous reporting system, the company does not meet the minimum requirements for the protections of the Federal Sentencing Guidelines.

Explanation:

Based on the information given, it should be noted that since there's no anonymous reporting system, the minimum requirements for the protections of Federal Sentencing Guidelines isn't met by the company.

The Federal Sentencing Guidelines simply refers to the rules that with regards to the uniform policy through which the individuals and the organizations that have been convicted of felonies and every other misdemeanors are set up. In this case, the requirements hasn't been met since there is no anonymous reporting system.

7 0
3 years ago
What is economic unity
NemiM [27]

Answer:

the state of different areas or groups being joined together to form a single country or organization.

Explanation:

4 0
3 years ago
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